Rep. Cuellar on President Trumps Trade Tariffs: Slapping Tariffs on our Friends is Bad Business

The Presidents decision to impose steel and aluminum tariffs on key trading partners will harm relations with our closest trading partners create market inefficiencies and raise the prices of consumer products. This is a misguided effort to protect the American aluminum and steel industries and to put pressure on our Canadian and Mexican allies in NAFTA negotiations. As I have said before tariffs often result in retaliatory actions by target countries and that is exactly what is happening. Mexico has already announced it will impose retaliatory tariffs on such goods as lamps flat steel apples grapes and other products making everyday commodities costlier for hardworking Americans.  Businesses simply cannot function in an environment of uncertainty and unpredictability. Slapping tariffs on our friends is bad business; inducing volatility in global markets does not encourage business investment and expansion. Instead businesses need predictability to grow and thrive which leads to economic growth integrated supply chains and lower consumer prices. To date there have been eight rounds of NAFTA negotiations in which we have made progress in tackling various trade issues. Instead of creating roadblocks with our partners we need to continue these discussions to find mutually beneficial remedies to our trade issues. The Administration has made it clear that there is significant ground to cover in ongoing NAFTA negotiations. And it is likely that with the upcoming Mexican and U.S. congressional elections NAFTA negotiations may be even further delayed. In the meantime I recently spoke with Ambassador of Mexico Gernimo Gutirrez to express my disagreement with the Administrations decision and to discuss ways to promote relations between the U.S. and Mexico."